Benjamin Felix

when he was still with S&P before he retired.

It's an episode worth checking out if you want to hear more about some of the inside baseball of how indexes are created and managed.

This is more quote from David Blitzer, increased interest in investing outside the US seems to have raised the awareness of float issues in foreign markets where cross holdings and strategic holdings by governments or founding families are more common than the US.

That's also interesting.

on the topic of indexes make changes to reflect changes in the market.

And I think as this article also points out, changes in how indexes are being used by investors.

I think we heard about that when I was in New York and talked to Jim Rowley and Tim Edwards.

They talked a little bit about this, just about how index providers and index fund providers work together to figure out what the index should look like.

And then I also wanted to mention this episode is coming out the week after we had Tim Edwards on the podcast, who is the managing director and global head of index investment strategy at S&P.

So he also had a bunch of comments just on, I asked him about that.

Why would an index provider change to accommodate these big companies?

And he had some interesting stuff to say.

That was a big tangent there.

Lots of fun though.

Why does all this matter?

Why do we care about index inclusion of IPOs?

A big piece of understanding why we're even talking about this is understanding that investing in IPOs on a secondary market is one of the worst investment strategies that you could possibly employ.

They tend to have a first day pop where the price on the public market jumps up relative to the IPO price, but most investors don't get the IPO price.

Getting an IPO allocation, especially in hot IPOs like this is really, really hard.

And even if you get one, it's not going to be as big as you kind of hoped it would be.